Drone Insurance – What the legislation means for you (updated for 2018)

March 29, 2018

In 2017, the government announced new rules for UK drone owners, which has implications for drone insurance. The changes will affect many hobbyists as well as commercial fliers. But do you understand exactly what the rules mean for you? Wouldn’t it be great if there was an easy way to familiarise yourself with the regulations and a helping hand to take the right steps to comply when they are enforced? Here we answer your questions on the changes and explore the impact on requirements for drone insurance too.

Why have new rules for drones been drawn up?

Drone sales have soared in the last few years. And so have the number of incidents that drones have been involved in. There were a reported 70 near-misses in 2016, up from just 6 in 2014 according to the Civil Aviation Authority. So it was always only a matter of time before safety and regulatory issues would need to be addressed. New rules have been drawn up to help to reduce the number of incidents and ensure drones are flown safely. They will provide a database that will make it easier for the Police to identify the owner of any drone. And it will make it clearer for drone pilots to know where and when they can fly.

What are the current rules for flying a drone?

There are currently different rules if you fly a drone for fun compared to if you fly commercially. If you fly for fun you don’t currently need to register or insure your drone. But you must meet these requirements:

You:

Can not be using your drone for commercial purposes

Can not fly a drone that weighs over 20kg

Must always keep your drone in sight

Must always fly below an altitude of 400ft

Should stay 150 ft away from buildings and people

Should stay 500 ft away from crowds and built up areas

Must follow local council rules about drone flights in your area

What are the new rules?

The new rules aim to increase safety and accountability when users are flying drones. When these new rules come into force, they will affect thousands of drone pilots.

Drones over 250g will have to be registered. Currently only drones over 20kg must be registered. This significant change means thousands of commercial and recreational drones will need to be registered in the future. To give you a rough idea, 250g is just under the weight of two iPhone 6’s.

Users will need to take special safety awareness tests. These are designed to ensure that anyone flying a drone knows the relevant safety, security and privacy regulations.

A new database of sensitive sites and buildings will be created and manufacturers will install “geo-fencing” sensors to prevent drones from taking off in or entering these areas.

When do the new rules come into force?

There is no date specified at the moment.

What will happen if I don’t comply with the new rules when they become law?

Whilst the full implications of failing to comply with the new laws are not yet stated, the new rules will give the police much greater powers. If requested, you’ll have to show your drone registration details. if you are unable to do this, it is likely that you could face fines or prosecution. If the police consider that a drone is being flown unsafely or illegally, they will be able to seize it and you could be prosecuted.

How will I know if I am flying in an illegal area?

Apps will help drone pilots to make sure they are not flying in or into a no-go zone. These will also help other drone users to see who is fling and where, which can help to prevent crashes. Geofencing, a virtual boundary, will be used to alert you if you are close to a no-fly area.

Will drone insurance become compulsory?

The current law states that if you are flying commercially or your drone weighs more than 20kg, insurance is required.

Drone owners and insurers are now closely watching to see if drone insurance will be made mandatory for lighter drones in the wake of the new legislation. When compulsory registration comes into force for drones over 250g, the police will be able to identify the owner of any drone that causes any damage or an accident. With that in mind, some people feel that public liability insurance will need to become compulsory for flying, just as third party insurance is essential to drive a car. By way of comparison, there was a similar situation when the automobile first took to the streets. Insurance was not obligatory at first until the risks became known and legislation was introduced.

Even if you don’t need drone insurance by law, having it will give you peace of mind. Things can easily wrong. The high costs of paying out legal fees or replacing your drone means insurance can save you money in the long run.

Is my recreation drone covered by my household insurance?

Most standard household policies exclude aircraft or motorised vehicles. There is much debate about whether a drone falls into that category or could be described as a toy. Keen to protect themselves, many insurance companies now have specific exclusion clauses for drones, even if they are only toys.

To find out if your drone is already covered by your home insurance you should check directly with your insurance company. Be aware that although your drone may be covered by your home insurance for theft or damage whilst it is within your property, it may not be covered whilst it’s being transported or flown. And it’s unlikely to protect you from a claim of publis liability. If you want this level of cover you’ll need to take out a separate policy.

What about high-value drones?

The cost of drones can rise into the £thousands. Check the individual limit on possessions for your household insurance policy. Depending on the cost of replacement you may need to add your drone as a specified item on your home insurance policy. And remember, that may only cover you for damage or theft from the home. If your drone is stolen when you’re not at your property, it’s unlikely it will be covered. You may decide it is easier to take out specific drone insurance.

Do I need any other insurance cover for my drone?

Public liability insurance is a big consideration for all drone owners. Drones are capable of doing substantial damage to property or to people if they crash. Accidents can and do happen even if you are flying safely and you could find yourself facing a legal claim against you. Public liability insurance will pay out for the cost of legal fees to defend your case as well as any compensation you are ordered to pay to an injured party.

What about privacy laws?

Personal injury and damage to property are not the only legal claims you could face. If you fly a drone fitted with a camera, you could also face action against you for breaching data protection and privacy laws. Again, insurance can help you to pay your legal fees in these cases.

Follow the law to fly safe

Just like any aircraft, a drone must be operated safely. Make sure you’re familiar with the Civil Aviation Authority’s Drone Code. This has six key principles:

always keep your drone in sight

stay below 400 feet (120 metres) to comply with the drone code

every time you fly your drone you must follow the manufacturer’s instructions

keep the right distance from people and property

you are responsible for each flight

stay well away from aircraft, airports and airfields

If you’re not sure where it is safe to fly your drone, download the Drone Assist app from NATS, which shows you areas to avoid or to fly in with caution.

Whilst you currently don’t need to register a personal drone in the UK, be aware that the law is different in other countries. Always check before you fly when you’re abroad.

Hobby drone insurance

Until the new drone laws come into force, you don’t need drone insurance to fly most hobby drones, although it may be prudent to have it anyway. However, with the new laws set to come into force this year, it could be only a matter of time until you will need it by law.

When must I insure my hobby drone?

Currently, you’ll need insurance to fly any drone that weighs 20kg or more for fun. But even if your drone is lighter than that, it’s worth considering insurance for peace of mind. Hobby drone insurance can help protect you financially if something does go wrong and your drone causes an injury to someone or damages property. It also covers you if you are sued for privacy issues. And as hobby drones can cost upwards of £5,000, it’s also worth considering insuring your drone against damage or loss so you can be confident that you can go out and replace it if something happens to it.

Things to consider when you request a hobby drone insurance quote:

Is it just you who will be flying your drone or do you need cover for multiple pilots?

Do you have more than one craft that you would like to insure?

Do you want insurance to cover the cost of fixing or replacing your drone if it is damaged in flight?

Are you flying in the UK only or abroad?

Do you want insurance to cover you during competitions?

Commercial drone insurance

Regardless of the upcoming legislation, if you fly a drone commercially it must be properly insured. Without the right commercial drone insurance, you won’t be able to apply to the Civil Aviation Authority for your Permission for Commercial Operation. If you do fly your drone without this permission and the right insurance, you can be fined. The weight of your drone will determine the level of liability cover that you must hold by law. And there are also lots of other considerations you’ll need to take into account if you’re looking for commercial drone insurance.

Will you be flying your drone in a ‘hazardous’ location? This could be in a city, where you may be prone to cause more damage to others if something goes wrong, or over water.

Are you planning on flying your drone in a country other than the UK? If so, are there any restrictions on travel to these locations? You will need specialist commercial drone insurance if you are planning on flying your drone in a country that the Foreign and Commonwealth Office has advised against travel too.

Do you need insurance cover for supporting equipment? if so, make sure this is included in your commercial drone policy.

To be eligible to take out commercial drone insurance you’ll first need to pass your ground school theory exam. Once you have your commercial drone insurance in place, you’ll be covered whilst you complete your training as long as you fly with a qualified trainer. Depending on the training you’re doing, you may discover that you’ll face higher excesses on your insurance if you do make a claim. And there may be certain exclusions, so check this carefully with your broker.

Other insurance options for commercial drone pilots

If you’re a commercial drone pilot there may be other commercial insurance products that you will need to consider. These include:

Drone insurance you can count on

For the best value deal, shop around or ask a specialist drone insurance broker, like Park Insurance, to do this for you.

Park Insurance offer commercial drone insurance to businesses of all sizes. And we can provide you with a great value quote for hobby drone insurance too. Because we’re independent brokers, we’re free to scour the market for the most competitive price. We’ll source cover that is tailored to your specific needs. That means you get the level of protection you need without paying over the odds.

Everything you need to know to make your DJ business a success Getting paid to party is top of the … Read more

Testimonials

"I just wanted to say a massive thank you for helping us get this sorted, especially as I'm working away this week so it was a logistical nightmare to start with. It's been a pleasure doing business with you and we'll be recommending you to all of our industry partners!"

I was impressed by their knowledge and professionalism and their comments will be really helpful as we start designing improvements to the way we deliver our services. Please pass on my thanks to Aaron, Alex and Nathan.

"I am writing to express my thanks to your staff for the excellent customer service that has been given to my husband and I following a recent fire at our home. Both Sarah and Joe made our lives a lot more bearable at a very stressful time by finding us alternative accommodation to live in whilst our house was uninhabitable. I hope we are in a position to NEVER have to use your claims service again but once again thank you so very much for all your help at this difficult time."